Hot Drinks in New Zealand
Euromonitor International's Hot Drinks in New Zealand market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 70 | Publication date: Feb 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Hot drinks moving nicely
In 2007 hot drinks in New Zealand performed well, bettering both the review period volume and current value CAGRs. Rising disposable incomes among the majority of consumers in turn made premium hot drinks more accessible and affordable. This, coupled with the significant expansion of premium hot drinks, stimulated consumers to trade up to upmarket hot drinks, which are perceived as indulgent treats and affordable luxuries. While consumer trading up immensely helped improve value sales, the rapidly expanding on-trade and the booming café culture continued to stimulate volume sales.
Volume sales up again but for how long?
A rapid expansion of the café scene and a growing range of fresh and flavoured coffee options in the on-trade had a spill-over effect on the off-trade as consumers looked to emulate their café experience at home. The rising penetration of espresso coffee making appliances in households made brewing high-quality fresh coffee at home much more convenient. The convenience factor also stimulated demand for instant flavoured coffee with wider acceptance and expansion of 3-in-1 premium instant coffee options led by Nescafé. In 2007, after a period of lacklustre performance, tea also experienced growth, underpinned by the rapid expansion of green tea, attributable to its perceived health and wellness benefits and consumers moving back to black tea, brought about by the growing demand for single estate tea blends and speciality black tea. Another notable trend in 2007 was the changing fortunes of other hot drinks with the entrance of Nestlé Double Blend in 2006.
Hot drinks cool for Nestlé
Despite the high degree of diversity with a wide range of coffee, tea and other hot drinks on offer, competition within hot drinks remained highly concentrated and often characterised as a domain of multinational companies, with the exception of The Bell Tea Co. The leading position in both coffee and other hot drinks has given Nestlé New Zealand a commanding position in hot drinks overall and the company’s impressive performance can be attributed to Nescafé, the nation’s leading hot drinks brand followed by Milo. Local company, The Bell Tea Co, led tea sales and the company’s strong association with Associated British Foods Plc and the Twinings brand boosted its performance in 2007. Cerebos Gregg’s firmly established itself as the second leading company in coffee while Dilmah New Zealand was a strong player in single origin, green and fruit/herbal teas.
Unchallenged grocery channel
Supermarkets/hypermarkets was the dominant channel in the retail distribution of hot drinks in 2007, improving its position throughout the review period. Although the convenience channel made slow progress, other channels such as discounters continually lost sales to supermarkets, largely attributable to the channel’s widening and complete hot drinks range, competitive pricing and in-store promotions.
Steady value sales expected despite modest volume gains
Despite a slowdown in volume sales due to the maturity of key sectors, constant value growth of hot drinks is expected to be stronger over the forecast period than the review period as consumers trade up to premium products. The growing café scene, health and wellness factors and products perceived as providing indulgence will all have a positive influence on the hot drinks market.
Table of contents
HOT DRINKS IN NEW ZEALAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks moving nicely
Volume sales up again but for how long?
Hot drinks cool for Nestlé
Unchallenged grocery channel
Steady value sales expected despite modest volume gains
KEY TRENDS AND DEVELOPMENTS
Premium hot drinks brands become more relevant and contemporary
Mainstreaming of healthier hot drinks choices
Manufacturers winning the battle for convenience without compromising on taste
On-trade trends benefit home consumption
Hot drinks with a fair deal
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2002-2007
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2002-2007
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2002-2007
Table 4 Retail Sales of Hot Drinks by Sector: Value 2002-2007
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2002-2007
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2002-2007
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2002-2007
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Hot Drinks Company Shares by Value 2003-2007
Table 12 Hot Drinks Brand Shares by Value 2004-2007
Table 13 Penetration of Private Label by Sector 2003-2007
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2002/2007
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2007
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2007-2012
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2007-2012
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2007-2012
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2007-2012
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2007-2012
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2007-2012
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2007-2012
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2007-2012
APPENDIX
Published Data Comparisons
Production/Import/Export Data
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - NEW ZEALAND
BELL TEA CO LTD, THE - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Bell Tea Co Ltd, The: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 3 Bell Tea Co Ltd, The: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 4 Bell Tea Co Ltd, The: Competitive Position 2007
CEREBOS GREGG'S LTD - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Cerebos Gregg’s Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 6 Cerebos Gregg’s Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 7 Cerebos Gregg’s Ltd: Competitive Position 2007
DILMAH NEW ZEALAND PTY LTD - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Dilmah New Zealand Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Dilmah New Zealand Pty Ltd: Competitive Position 2007
SCARBOROUGH FAIR FOODS LTD - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Scarborough Fair Foods Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 Scarborough Fair Foods Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
COFFEE IN NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Sales of Coffee by Type: Volume 2002-2007
Table 27 Sales of Coffee by Type: Value 2002-2007
Table 28 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 29 Sales of Coffee by Type: % Value Growth 2002-2007
Table 30 Standard Vs Coffee Pods 2004-2007
Table 31 Coffee Company Shares 2003-2007
Table 32 Coffee Brand Shares 2004-2007
Table 33 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 34 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 35 Forecast Sales of Coffee by Type: Value 2007-2012
Table 36 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 37 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
Table 38 Instant Coffee by Speciality Type 2004-2007
TEA IN NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 39 Sales of Tea by Subsector: Volume 2002-2007
Table 40 Sales of Tea by Subsector: Value 2002-2007
Table 41 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 42 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 43 Tea Company Shares 2003-2007
Table 44 Tea Brand Shares 2004-2007
Table 45 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 46 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 47 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 48 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
Table 49 Fruit/herbal Tea by Type: % Off-trade Volume 2005-2006
OTHER HOT DRINKS IN NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 50 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 51 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 52 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 53 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 54 Other Hot Drinks Company Shares 2003-2007
Table 55 Other Hot Drinks Brand Shares 2004-2007
Table 56 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 57 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 58 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 59 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012